Savills forecasts 18.2% rise in rents as growth outstrips inflation

Conditions in the buy-to-let market look set to remain favourable for Britain's landlords, with a Savills report predicting that rent prices throughout Britain will increase by 18.2 per cent over the next five years, rising well ahead of inflation.

As the study outlines, the difficulty people face in saving the deposits necessary to buy a property will see demand in the private rented sector continue to intensify, while economic and wage growth will support the hike in rents as issues with undersupply persist.

Yolande Barnes, director of Savills world research, said: "Deposit affordability will continue to be the main brake on home ownership levels, fuelling demand for rented accommodation.

"For investors, the UK's private rented sector looks an attractive option. Rental growth is a function of constrained deposit affordability and underlying demand for shelter, while recent population trends suggest that demand will continue to increase in coming years."

According to the report, the most substantial increases in rent prices will be witnessed in London and the south-east, with conditions in the region lending to a rise of 26.4 per cent in the next five years - far higher than the national average.

And as investors continue to benefit from ever-higher demand among prospective tenants, the potential to enjoy even greater profits in the coming years appears to be strong.

But despite the favourable conditions, landlords do have an extensive range of factors to take into account if they are to reap the rewards of the booming buy-to-let sector, including the need to guard against the risk that unexpected costs compromise their profits.

Whether it's accidental damage or essential repair work that suddenly arises, landlord insurance policies can serve to protect investors from the threat of having to foot expensive bills themselves, enabling them to focus on other aspects of the lettings game as they set about expanding their portfolios.